The Directors have pleasure in presenting 54th Report on the operation
 of your Company together with audited accounts for the year ended March
 31, 2012.
 
 1.  FINANCIAL RESULTS                              (Rupees in Lacs)
 
                                        Current year     Previous year.
 
                                      Rupees    Rupees   Rupees    Rupees
 
 Sales and Other Income                           7.18            257.07
 
 Less:
 
 Expenditure
 
 Employees Cost                                          186.40
 
                                        5.65
 
 Operating and Other Exp.              18.22             127.80
 
                                                 23.87
 
 Operating Profit                               (16.69)           (57.13)
 
 Extra Ordinary items                      
 
 - Sundry Balances written off             -             (33.74)
 
 - Profit/(Loss) on sale of Assets         0             611.56
 
 - Reduction in Liabilities to 
 FD Holders (Int.)                         0                .28
 
                                                    .0             578.1
 
 Profit/(Loss) before interest,                 (16.69)           520.97 
 Depreciation & Taxation amount
 
 - Interest                           (10.12)              (.33)
 
 - Provision for Doubt full Debts          0             (13.24)
 
 - Provision for Depreciation          (2.48)               (49) 
 
                                                (12.60)           (62.57)
 
 The Net Profit/ (Loss) for the
 year Amounts to                                (29.29)           458.40
 
 Earlier years income/expenses
 
 Income tax earlier year                   -                      (21.35)
 
                                           -                      (12.66)
 
 Interest pertaining to earlier years                           (1138.91)
 
 Balance brought forward from 
 previous year                             -    (29.29)          (714.52)
 
 Leaving a balance to be carried
 forward                                     (16451.19)        (15736.67)
 
                                             (16480.48)        (16451.19)
 
 INCOME                                                                %
 
 Sales and Other Income                 7.18       100   257.08   100.00
 
 EXPENDITURE
 
 Material Consumption                      -                  -        -
 
 Employees Cost                         5.65     78.69   186.40    72.41
 
 Operating and Other expenses          18.22    253.76   127.80    49.71
 
 Total Expenditure                     23.87    332.45   314.20   121.12
 
 Operating Profit (Loss)              (16.69)  (232.45)  (57.12)  (21.12)
 
 2.  DIVIDEND:
 
 In view of the loss for the period, the Directors have not recommended
 any dividend.
 
 3.  REVIEW OF FINANCIAL PERFORMANCE:
 
 As reported in the previous years'' Annual Reports, the assets of the
 Company had been sold by Secured Lenders. The Company is not carrying
 on any activity.
 
 4.  BIFR
 
 As reported in earlier Annual Reports, your Company was declared sick
 unit under section 3(1)(O) of the Sick Industrial Companies (Special
 Provisions) Act, 1985 SICA) on 5th July, 2006 by the Board for
 Industrial and Financial Reconstruction (BIFR). A draft Scheme was
 prepared and submitted by the Company to the BIFR for approval and to
 the Company''s Bankers for their approval. At the hearing held on
 05.01.2011 BIFR has dismissed the Company''s application. However, the
 Company is yet to receive the order from BIFR to this effect.
 
 5.  OUTLOOK FOR THE CURRENT YEAR
 
 A.  BUSINESS IN THE CURRENT YEAR
 
 All the mortgaged assets of the Company had been sold by the secured
 lenders. The said assets contained production facilities of the Company
 thereby completely hampering the Company''s ability to manufacture goods
 and even doing job work. After the said sale, the Company is not having
 any operating assets. The Company is also not able to maintain an
 office and the Directors are trying to comply with formalities to the
 best of their personal capacities. All the employees/workers of the
 Company had also resigned. The Company is not carrying on any activity
 at present.  The Company has still to pay large amount to banks and
 other Secured and Unsecured creditors. The Company does not have funds
 to maintain its office also and at the courtesy of director a postal
 address is maintained for collecting correspondence. It is not in a
 position to meet its statutory and other daily expenses.
 
 6.  AUDITORS'' NOTES AND OBSERVATIONS:
 
 Auditors have made certain observations in their report. These have
 been appropriately dealt with in the notes to accounts which are
 self-explanatory.
 
 7.  FIXED DEPOSITS:
 
 The outstanding fixed deposits as on March 31, 2012 aggregated to
 Rs.12.63 crores towards Principle and Rs. 2.47 crores towards interest.
 The Company has repaid fixed deposits of Rs.17 cr.  approx.(7665
 folios) during the period from 2002 to date due to persistent efforts
 of Directors.
 
 Efforts had been made to the effect that part of the funds received by
 the Company during the period had been used towards repayment of fixed
 deposits. It is the Company''s intention to pay the small depositors as
 early as possible and the draft Scheme submitted to BIFR had been
 prepared with this in mind. But under the circumstances, as narrated
 above the task now seems impossible.
 
 8.  ADDITIONAL INFORMATION:
 
 In terms of Section 217(1)(e) of the Companies Act, 1956, read with the
 Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988, the relevant information is given below:
 
 A.  Conservation of Energy: The Company is not carrying on any activity
 at present and hence it is not applicable.
 
 B.  Technology Absorption, Adaptation and Innovation: Not Applicable
 
 C.  Foreign Exchange Earnings and Outgo:
 
 i) Activities relating to exports: NIL
 
 ii) Foreign Exchange earned and used: NIL
 
 9.  PARTICULARS OF EMPLOYEES:
 
 There were no employees drawing a remuneration exceeding Rs. 60 lacs
 per annum when employed for the whole year or Rs. 5 lacs per month when
 employed for part of the year and hence, no disclosure under Section
 217(2A) of the Companies Act, 1956 is made.
 
 10.  DIRECTORATE:
 
 Mr. Haresh A. Bhojwani retires by rotation and being eligible offers
 himself for reappointment.
 
 Mr. S. R. Hemmady resigned as Whole-time Director and Secretary of the
 Company w.e.f.1.8.2012 but remains as a Director.
 
 11.  AUDITORS:
 
 M/s Bhangaria & Co, Chartered Accountants, the Auditors of the Company
 retire at the ensuing Annual General Meeting and are eligible for
 re-appointment.
 
 12.  DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000,
 the Board of Directors of the Company confirms:
 
 I.  that in the preparation of the annual accounts, the applicable
 Accounting Standards have been followed and there has been no material
 departure;
 
 II.  that the selected accounting policies were applied consistently
 and the directors made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company as on March 31, 2012 and of the loss of the Company for the
 period ended March 31, 2012.
 
 III. that proper and sufficient care has been taken for the maintenance
 of adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities;
 
 IV.  that the annual accounts have been prepared on a going concern
 basis despite sale of assets of the Company by secured lenders.
 
 13.  CORPORATE GOVERNANCE:
 
 A note on Corporate Governance along with a Certificate from Auditors
 is annexed and forms part of the Directors'' Report.
 
 Registered Office:         For and on behalf of the Board of Directors,
 
 Plot No.1&2, Jijamata Nagar,     SIL BUSINESS ENTERPRISES LIMITED,
 
 Nashik Road-422 101.
 
 Date: August 23, 2012.              DIRECTOR          DIRECTOR